There are a lot of considerations to think of when a person is planning to purchase a life insurance policy. These considerations are the following:

1. Type of Policy. The first thing that a person planning to buy a life insurance policy is the type of policy. There are basically two main categories of life insurance policies. The term life insurance is a policy that will give insurance coverage to a policy holder for a specific period. Known as “term”, the duration of coverage may range from 1 year to 30 years. This type of policy is ideal for people who are still young and have a lot of years ahead of them. The longer the term for this policy will mean that the person will pay lesser term life insurance quotes. A disadvantage of a term life insurance policy is that the death benefits will only be given to the policy holder’s beneficiaries only on the death of the policy holder. Another disadvantage of a life insurance and term policy is that the policy has an expiry date. This means that once the policy’s term expires, the policy holder will no longer be insured. By this time, the policy holder would have aged considerably and his/her health may have deteriorated enough for them to get a hard time renewing their policy or getting a brand new policy.

One type of permanent insurance plan is universal insurance. There are other types too that you can read about but most are basically the same. All permanent insurance plans are taken for the entire life of the insured and there is no expiry date. The policy ends only if the insured dies, cancels the plan or the company withdraws it due to defaulting payments. Universal insurance has two components – savings and cash component. The cash component is similar to that of term insurance’s death benefit portion. Part of the premium payment is invested by the insurance company in various savings options like stocks and bonds. This part earns an interest that the insured can use when needed.

What is the coverage quantity that will suit your family?: Since life insurance is all about the death benefit the family will receive, the next important factor to consider is the quantity of this coverage amount. This is the money that your beneficiaries will receive on your death. If you want low cost term life insurance, then you must opt for lower coverage amount. Make sure you do not sacrifice quantity for cost. If the coverage amount is inadequate for your family’s needs then the purpose of taking a policy is lost. When calculating the coverage amount, you must consider current needs of the family and future needs. Usually, insurance experts suggest you multiply your present salary by 10-15 times to arrive at the right coverage figure.

The Practice of Underwriting: This is the next consideration when choosing a life insurance policy. if you have the time and want to get truly affordable policy, are young and in good health, then opt for the underwriting process and undergo a complete health exam. This will determine your insurability that is in turn dependent on your age, health status and lifestyle choices. This process can take a long time and at the end of it, you will either be issued or denied a policy. If you are accepted, the underwriter will place you in a specific class – preferred plus, preferred or standard. The first category is the best and will give low cost insurance.

If you have some health issues or do not have the time, then get a policy without a medical exam. A no medical exam term life insurance policy can be purchased online and the process completed within one business day.

4. The Additional Riders. Another consideration when purchasing a life insurance policy is to determine whether the policy will answer all the needs of your family. If you feel that the policy is lacking in coverage or in protection, you can easily tweak your policy by purchasing additional benefits known as insurance riders. Riders are add-on benefits that you can purchase to offer additional protection to your family. Examples of riders are the accidental death benefit or the spousal insurance rider.

Article by David Livingston who\’s an expert in life term insurance. Visit his site today to get even more information about life insurance online and fully equip yourself to get the best and most up to date information before committing yourself to a long term plan.

Article by David Livingston of EQuote, who is a specialist in everything life insurance. For more information, visit his site at https://www.equote.com/life-insurance/no-medical-life-insurance/.

Author Bio: Article by David Livingston who\’s an expert in life term insurance. Visit his site today to get even more information about life insurance online and fully equip yourself to get the best and most up to date information before committing yourself to a long term plan.

Category: Finances
Keywords: life insurance and term, no medical exam term life insurance, low cost term life insurance